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Post: The World Bank did not rule out the possibility of a recession in the global economy in 2023


World Bank headquarters in Washington DC. archive photo

The World Bank predicted a growth of 1.7 percent in the global economy and did not exclude recession.

WASHINGTON, January 10 – RIA Novosti. The World Bank said it expects global economic growth to slow to 1.7% in 2023, indicating that any new negative event could trigger a recession. bank.

In a press release accompanying the release of the regular report, the bank said it had lowered its 2023 economic growth forecasts for 95% of developed countries and 70% of developing countries.

“The global economy is projected to grow by 1.7% in 2023 and by 2.7% in 2024. The sharp slowdown in growth is expected to be widespread: 2023 projections for 95% of advanced economies and almost 70% of emerging and transition economies. revised downwards,” the bank said.

He sees rising inflation, rising interest rates, declining investment and the economic consequences of the conflict in Ukraine as factors to hinder.

The press noted, “Due to the fragility of the economic situation, any new adverse event … could push the global economy into recession. This is the first time in more than 80 years that two global recessions will occur in the same decade.” broadcast said.

As examples of such events, experts cited an unexpected rise in inflation and a sharp rise in rates to contain it, the resumption of a pandemic, or an escalation of geopolitical tensions.

The Bank predicts that growth in advanced economies will decline from 2.5% in 2022 to 0.5% in 2023. “Over the past two decades, slowdowns of this magnitude have preceded a global recession,” the statement said.

Growth in emerging and transition economies, excluding China, will slow from 3.8% to 2.7%. “By the end of 2024, the GDP of countries with transition and developing economies will be about 6% below the level expected before the pandemic,” the document says. The bank expects global inflation to ease but remain above pre-pandemic levels.

Source: Ria

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